MNI China Daily Summary: Wednesday, June 26

     TOP NEWS: Liquidity across China's interbank market picked up in June, the

latest MNI China Liquidity Survey shows. The June MNI China Liquidity Index saw

83.3% of respondents reporting liquidity conditions improving from last month,

marking the highest level since July last year.

     LIQUIDITY: The PBOC skipped open market operations, leaving liquidity

unchanged as no reverse repos matured, according to Wind Information. Total

liquidity in the banking system is at a reasonable and ample level, PBOC said in

a statement on its website. 

     RATES: The 7-day weighted average interbank repo rate for depository

institutions (DR007) fell to 2.3791% from Tuesday's close of 2.4167%, Wind

Information showed. The overnight repo average decreased to 0.9675% from

Tuesday's 1.0086%.

     YUAN: The yuan weakened to 6.8855 from Tuesday's close of 6.8809. The PBOC

set the dollar-yuan central parity rate weaker for a third day at 6.8701 today,

compared with 6.8580 set on Tuesday.

     BONDS: The yield on the 10-year China Government Bond was last at 3.2700%,

up from Tuesday's close of 3.2600 , according to Wind Information.

     STOCKS: The benchmark Shanghai Composite Index fell 0.19% to 2,976.28. Hong

Kong's Hang Seng Index rose 0.13% to 28,221.98. 

     FROM THE PRESS: China will open the service sector to foreign investment

following the liberalization of foreign investment in manufacturing, including

medical research and development, finance, value-added telecommunications, and

cultural and entertainment, the newspaper said.

     China Mobile will construct more than 50,000 5G base stations across 50

cities to provide a 5G commercial service and further expand in 2020, China

Securities Journal reported citing Yang Jie, the company's chairman as saying. 

     China banned pork imports from Canada after detecting ractopamine residues

in its products, the People's Daily said. An investigation by the Chinese

authorities found 188 forged veterinary health certificates and the Chinese

embassy in Canada requested Ottawa to suspend the issuance of meat certificates

for exports to China from June 25, the daily said.

     China will boost the production of cutting-edge technologies such as 5G

communication and artificial intelligence to meet growing consumer demand, the

Economic Information Daily reported. Local governments will implement supporting

policies and vendors will develop products to guarantee the upgrade, the

newspaper said citing Yu Xiaohui, the general engineer with China Communication

Research Institution.

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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